The Houston economy is on pace to finish 2011 with more than 66,000 jobs added for the year, he said. According to the most recent data from the Texas Workforce Commission, the Houston area added 66,300 jobs from September 2010 to September 2011, a year-over-year increase of 2.6 percent.

Jones was not as bullish a year ago when he predicted that Houston would add a little more than 30,000 jobs in 2011. The increase, he said at last year's luncheon, would be led by gains in government, retail and oil and gas exploration and production.

Jones said on Tuesday that he underestimated the growth at the Port of Houston, airport construction work that has created blue-collar jobs and the boom in energy-related manufacturing and services.

Demand for Houston-made energy products is strong globally, he said, which is boosting the local economy.

At the same time, he said, all levels of government have cut spending because of lower tax revenues and the end of federal stimulus spending.